Legal Basis for AAUI Establishment
Law No. 40 of 2014 concerning Insurance
CHAPTER XIV – concerning Insurance Business Association
- Every insurance company must become a member of one of the insurance business associations that is suitable for its type of business.
- The insurance business association as referred to in paragraph (1) must obtain written approval from Financial Fervices Authority (OJK).
- The Financial Services Authority can assign or delegate certain powers to insurance associations in the framework of regulating and/or supervising insurance companies.
- Further provisions regarding the assignment or delegation of authority as referred to in paragraph (1) are regulated in the Financial Services Authority regulations.